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MCI REPORTS STRONG FIRST QUARTER

 MCI REPORTS STRONG FIRST QUARTER
 WASHINGTON, April 23 /PRNewswire/ -- Driven by strong traffic


growth nearly double the industry average, MCI Communications Corporation (NASDAQ-NMS: MCIC) today reported solid revenue gains and increased year-over-year earnings for the quarter ended March 31, 1992.
 - First quarter 1992 revenue was $2.224 billion, up 9.8 percent
 over first quarter 1991 revenue of $2.025 billion, and up 2.9
 percent over fourth quarter 1991 revenue of $2.162 billion.
 - First quarter 1992 earnings were $134 million, or 51 cents per
 common share, versus $123 million or 48 cents per common share
 in the year ago quarter and $137 million, or 52 cents per
 common share, in the fourth quarter of 1991.
 "MCI had a strong first quarter with excellent performance in the business and consumer markets," said Bert C. Roberts Jr., president and chief executive officer. "We are right on target and continue to be optimistic about our strategy of investing in long-term profitable growth."
 Ongoing strength in the large account area and continued success in the consumer market, largely due to the popularity of MCI's Friends & Family, contributed to the quarter's positive results, according to Roberts.
 MCI recently won the largest contract in its history from the Federal Aviation Administration to supply air traffic control communications. The value of the contract could reach $1 billion over the next ten years.
 Other contracts signed by MCI during the quarter include a multi-million dollar agreement to provide international long distance services to all federal government departments and agencies, and an estimated $10 million contract with Baxter International to provide an international private data network.
 Capitalizing on the success of MCI's Friends & Family, the company introduced a similar 20 percent savings plan for small businesses, called Friends of the Firm.
 To conform with recent changes in industry reporting practices, MCI has decided to reclassify payments made to foreign telephone companies for calls made from the USA by MCI's customers. These payments, which have previously been classified as direct reductions of revenue, will be classified as telecommunications expense. Income from operations and net income will not be affected.
 This change would increase first quarter revenue by $289 million to $2.513 billion in 1992 and by $258 million to $2.283 billion in 1991. Telecommunications expense would also increase by the same amounts to $1.358 billion in 1992 and to $1.232 billion in 1991. In the future, these changes will become a standard part of MCI's financial report. Financial results announced today do not reflect this change.
 -0- 4/23/92
 /CONTACT: MCI Communications Corporation, Corporate News Bureau, 1-800-289-0073 or 202-887-3000/
 (MCIC) CO: MCI Communications Corporation ST: District of Columbia IN: TLS SU: ERN


DS -- DC005 -- 1656 04/23/92 08:51 EDT
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Publication:PR Newswire
Date:Apr 23, 1992
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